Wed, Jul 08, 2009 - Page 11 News List

FPG preparing to market Taoyuan property in PRC

TECH PARK: Broker DTZ Debenham said roadshows would be held in Beijing, Shanghai, Shenzhen and Taipei in September to attract Chinese or local buyers

By Joyce Huang  /  STAFF REPORTER

Formosa Plastics Group (FPG, 台塑集團) plans to hold roadshows to attract Chinese businesses to its 85-hectare lot at the Taoyuan High-Tech Industrial Park, located in the county’s Guanyin Township (觀音), said DTZ Debenham Tie Leung (戴德梁行), the realtor arranging the deal.

“Roadshows will be held in Beijing, Shanghai, Shenzhen and Taipei in September to attract Chinese and local buyers,” the realtor’s general manager Billy Yen (顏炳立) told a media briefing yesterday.

The site, where FPG once hoped to develop its auto business, could help Chinese manufacturers interested in adding value to their exports with a “Made in Taiwan” label, which could raise their retail price tag by between 5 percent and 10 percent, he said.

Yen added that a clothing manufacturer based in China’s Shandong province had once expressed an interest in setting up a plant there.

DTZ expects the land deal to fetch some NT$10 billion (US$303 million) in total, or a closing price of NT$42,000 per ping (3.3m²), before the end of the year.

Yen was also optimistic about the government’s easing of restrictions on Chinese investment in Taiwan’s commercial property market.

He said that Chinese capital could start to flow in around the fourth quarter of this year or next year, adding that many of these prospective buyers favored properties in the upscale Xinyi District (信義), where realty supply is limited.

Chinese investors may only consider second-tier properties in Neihu District (內湖) if there are none available in Xinyi District, Yen said.

Yen added that he expected China-based Taiwanese businesses and local investors, such as cash-abundant life insurers, to play a more active role in the property market following a government decision to lower the inheritance and gift taxes to attract capital repatriation.

Ting Hsin International Group (頂新集團) is a good example, he said.

Yen said Ting Hsin had been looking for a commercial property in the Xinyi District since early this year. In April, Ting Hsin tried but lost a bid for the Shin Kong Mitsukoshi A11 department store building to Antai Life Insurance Co (安泰人壽), a subsidiary of Fubon Financial Holding Co (富邦金控).

Yen added that he believed now would be a good time to put up Agora Garden hotel (亞太會館) for sale again with a floor price of NT$14.9 billion, although its owner, Shen Ching-ching (沈慶京), may expect a higher closing price.

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